Home Views Cryptocurrency

Regulating the crypto Wild West

Raghuram G Rajan
Raghuram G Rajan5/5/2022 11:06 AM GMT+08  • 10 min read
Regulating the crypto Wild West
The rapid growth of digital assets is a case in point. Though there are many scams, there are also many opportunities, says Rajan / Bloomberg
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

A well-functioning financial system is a key component of any successful economy. Without efficient payments and broadly accessible financial services, people cannot engage easily in commerce, save for a rainy day, invest in new innovations and business models, or insure against risk. But precisely because the financial sector is so central, developments within it are highly consequential. If the digital revolution has shown us anything, it is that one seemingly minor innovation can upend or even eliminate entire industries.

The promise of financial technology (fintech) is that it will enable even faster, less costly commerce (including across international borders), improve the allocation of capital toward productive investments, and make financial services even more efficient and accessible, not least to the world’s 1.7 billion unbanked or underbanked people. But technological innovation is not inherently “good” or “bad.” Some changes yield broad benefits for society, but others may benefit the few at the expense of the many, and most will bring a mix of benefits, costs, and complications.

The rapid growth of digital assets is a case in point. Though there are many scams, there are also many opportunities, and the countries that can harness these new technologies effectively may stand to gain a competitive edge. How should governments – and democratic electorates – weigh the risks and rewards? Raghuram G Rajan, a former governor of the Reserve Bank of India, recently offered his views on this and related questions for Project Syndicate’s “Finance 3.0” event.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.